55th GST Council Meeting: Panel clarifies on popcorn taxation. Check details here

The 55th GST Council meeting has clarified the GST rates on popcorns served at movie halls and theatres. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising her state counterparts, has said the ready-to-eat popcorn mixed with salt & spices if not pre-packaged will attract 5% GST, while the rate will be 12% if it is pre-packaged and labelled.

The council increased the rate to 18% when popcorn is mixed with sugar (caramel popcorn) as it changes the essential character of popcorn to a sugar confectionery and will be classifiable under HS 1704 90 90.

The GST Council, which is meeting in Jaisalmer, Rajasthan, may review the adjustment of tax rates for around 148 items, including possible increases on luxury goods like watches, pens, shoes, and apparel. Additionally, they could consider implementing a new 35% tax slab specifically for sin goods, separate from the current four-tier GST system comprising 5%, 12%, 18%, and 28% rates.